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Background Readings

Background Readings

Here you will find a comprehensive list of readings and information which will help provide a more thorough understanding of the 2008 financial crisis and its implications.

  1. Understanding the mechanism
  2. Financial Crisis and Monetary Policy
  3. Evaluating the Real Effect of the Financial Crisis
  4. The Crisis and Stock Market Fluctuations
  5. Policy Proposals
  6. Keeping updated
  7. Stress Tests
  8. Finally Let us Have some FUN ...

 

1)Understanding the mechanism

Adrian T. and H.S. Shin(2008) "Liquidity and Leverage"
Ashcraft A. and T. Schuerman (2008) "Understanding the Securitization of Subprime Mortgage Credit" mimeo, Federal Reserve Bank of New york
Gorton G.B.(2008) "The subprime panic" NBER working paper 14398 http://www.nber.org/papers/w14398
Reinhart C and K.Rogoff(2008) "Is the 2007 U.S. Sub Prime financial  Crisis so different? An international Historical Comparison. http://www.nber.org/papers/w13761.pdf
Taylor J. and Williams(2008) "A Black Swan in the Money Market" Federal Reserve Bank of San Francisco Working Paper 2008-04,
Taylor J. and Williams(2008) "Further Results on a Black Swan in the money market" mimeo
Tong H. and Shang-Jin Wei(2008) "Real Effects of the subprime Mortgage Crisis: Is It a Demand or a Finance Shock?" IMF working Paper wp/08/186 
 A useful check : Figlewski S. (2008) "Viewing the Financial Crisis from 20000 Feet up" ( I think this paper misses the main point of the current crisis (which is that it is not the initial shock that matters (subprime related losses are about 3 per cent of US stock market capitalization) but the trasmission mechanism of such shock (the de-leveraging process)). Make sure that you know how to criticize the views expressed here.

 

2)Financial Crisis and Monetary Policy

Adrian T. and H.S. Shin(2008) "Financial Intermediaries, Financial Stability and Monetary Policy"
Cecchetti S.G. and L. Li(2005) "Do Capital Adequacy Requirement Matter for Monetary Policy ?" NBER WP 11830, http://www.nber.or/papers/w11830

 

3) Evaluating the Real Effect of the Financial Crisis

 

Bloom (2009)"Uncertainty Shocks" Econometrica, forthcoming
Chari V.V., L. Christiano and P.Kehoe(2008) "Myths about the Financial Crisis of 2008" Federal Reserve Bank of Minneapolis Research Department WP 666
Cohen Cole, Duygan Bump, Fillat, Montoriol-Garriga(2008) "Looking Behind the aggregates: a Reply to Myths about the Financial Crisis of 2008" Federal Reserve of Boston
Coe P. (2002) "Financial Crisis and the Great Depression: A Regime Switching Approach" Journal of Money, Credit and Banking, 34, 1, 76-93
Greenlaw D., Hatzius J., A.K. Kashyap and H.S. Shin (2008) "Leveraged Losses:Lessons form the Mortagage Market Meltdown"
Dell'Ariccia G, E. Detragiache and R.Rajan(2008) "The real effect of banking crises" Journal of Financial Intermediation
IMF Global Financial Stability Report (Oct 2008)  Financial Stress and Deleveraging Macro-Financial Implications and Policy  

 

4) The Crisis and Stock Market Fluctuations

 

Barro R. J. and Urzua(2009) "Stock Market crashes and depressions" NBER working paper 14760, http://www.nber.org/
Fama E.F.(1990) "Stock Returns, Expected Returns and Real Activity" Journal of Finance vol 45, No.4
J. Choi, A.Hauser, K.J. Kopecky(1999) "Does the Stock Market Predict Real Activity? Time-Series evidence from the G-7 Countries" Journal of Banking and Finance
R.G. Rajan and L. Zingales(1998) "Financial Dependence and Growth" The American Economic Review, 88, 3, 559-586 http://www.jstor.org/stable/116849

 

5) Policy Proposals

 

Blanchard O.(2008) "The Crisis, Basic Mechanism and Appropriate Policies", Munich Lecture
IMF(2008) Fiscal Policy for the Crisis 

 

6) Keeping updated

 http://www.eurointelligence.com/
 http://www.voxeu.org/

  

7) Stress Tests

Foglia A. (2008) "Stress testing credit risk: a survey of authorities' approaches" Bank of Italy Occasional Papers 37,

 

 8)Finally Let us Have some FUN  ...

 The American Stuff :An Awkward Loan Interview starring Bernanke and Paulson:
http://www.thedailyshow.com/video/index.jhtml?videoId=186056&title=awkward-loan-interview

The British Stuff: Bird and Fortune on subprime crisis
http://www.youtube.com/watch?v=mzJmTCYmo9g